The Situation in 1945 (AQA A-Level History): Revision Notes

The Situation in 1945

Allied victory and British strength

Britain emerged from the Second World War on the winning side. The alliance with the USSR and USA ensured victory against Germany, and Japan's surrender in August 1945 allowed British forces to recover lost territories in South-East Asia. Around one-quarter of the world's land surface remained part of the British Empire or Commonwealth at war's end. The war appeared to demonstrate the Empire's strength and solidarity, just as victory in 1918 had done.

Britain's war record seemed impressive. While approximately 400,000 British people died, this represented merely one-fiftieth of Soviet casualties. British cities suffered bombing but escaped the comprehensive destruction witnessed in Germany or the horrors of enemy occupation. The British economy appeared healthier than the war-ravaged economies across Europe. British military forces played a major role in Allied victory, and by 1945 these forces numbered 5 million personnel stationed across the globe in Germany, Austria, Italy, Greece, Palestine, Iran, Iraq, Syria, north Africa, Indo-China, the Dutch East Indies, and throughout many parts of the Empire.

British weaknesses beneath the surface

The superpowers and Britain's relative decline

Britain could not compete with the USA and USSR in terms of size and military strength. These two powers had emerged from the war in dramatically stronger positions than Britain.

The USSR had conducted most of the hard fighting against Germany. By 1945 the USSR possessed enormous conventional forces and controlled most of eastern Europe. Greece, Turkey, Iran, Iraq and even Italy appeared vulnerable to Soviet pressure. British strategists feared Soviet aims and recognised that Britain would need to maintain a massive military presence across Europe to deter any Soviet threat. This requirement placed enormous strain on British resources.

The USA emerged from the war as easily the richest country on earth. Unlike Britain, the American economy had not suffered bombing or invasion. Instead, war had stimulated American economic growth. By 1945, the USA produced half the world's manufactured goods. The USA possessed large, well-equipped conventional forces and was the only country capable of manufacturing nuclear weapons. This gave America unmatched military power.

Economic problems and financial weakness

The destruction of houses, factories and shipping during the war cost Britain approximately one-quarter of its national wealth. Most foreign assets had been sold to pay for wartime imports, which substantially reduced the income from abroad that had previously contributed to British economic strength. These sales represented a permanent loss of revenue.

In 1945, British exports totalled just £350 million, representing only 40 per cent of the pre-war figure. Meanwhile, imports had reached £2000 million. This massive trade deficit would not be easy to remedy. Valuable export markets had been lost, mainly to American competitors. Britain would likely take many years to restructure its industries for peacetime production and restore its competitive position.

Britain was in debt to the extent of £3500 million. Approximately £2500 million of this was owed to its colonies. Repayment of this debt seemed impossible. Indeed, by 1945 it seemed probable that Britain would run out of hard currency and become unable to import the raw materials on which its economy depended. American assistance was essential. However, many British officials were troubled by the extent of Britain's dependence on the USA, questioning whether such dependence on American loans was compatible with Britain's existence as an independent great power.

The weakening of imperial ties

In many respects, the war had weakened the bonds holding the Empire together. This weakening occurred across several dimensions.

The economic dimension

Before 1939, Britain's economic strength had helped bind the colonies to the British imperial system. However, by 1945 Britain was in dire economic straits. Britain was too poor to buy what the Dominions and colonies produced, too poor to invest in their economic development, and unable to provide the manufactured goods they needed. If these conditions persisted, some of the most important factors holding the Empire together would be lost. Economic interdependence, which had been a cornerstone of imperial unity, was breaking down.

Britain and the Dominions

The war had emphasised the difference of interests between Britain and each of the Dominions. Éire had not even fought on Britain's side, and many South Africans had opposed participation. By 1945, Canada, Australia and New Zealand had all slipped substantially into the USA's orbit rather than Britain's.

The fall of Singapore and the subsequent collapse of British power in South-East Asia demonstrated Britain's inability to defend Australia and New Zealand. These Dominions turned instead to the USA for protection. With Australia threatened by Japanese invasion in 1942, Australian Prime Minister John Curtin declared that 'Australia looks to America, free of any pangs as to our traditional links with the United Kingdom'. This statement acknowledged a fundamental realignment of strategic relationships.

Other undermining factors

The war had undermined the foundations of British imperial power in additional ways beyond economics and Dominion relations.

During the war, Britain mobilised the Empire's resources to an unprecedented degree. Colonial economies were regulated through controls over output, prices, marketing and labour. Opposition to British rule in India and Egypt had been forcibly suppressed. This regimentation and suppression generated increased opposition to British rule across the Empire. Imperial control through coercion was neither sustainable nor compatible with British claims to be fighting for freedom.

The ideological struggle against Hitler made assertion of pre-war colonial principles untenable. Although many British politicians probably still believed in white racial superiority, it became less acceptable to openly claim it after defeating a regime based on racial ideology. The moral foundations of empire had been compromised.

Europe's other imperial powers, particularly France, Belgium and the Netherlands, emerged physically weakened by the war. By 1945, it was clear that peoples across the world no longer regarded empires as possessing the same sort of political legitimacy as nations.

The terms on which Britain had built and maintained a world-wide Empire had fundamentally changed. A new world order had emerged, with new institutions, new ideologies and a new balance of power. Britain faced a transformed international environment in which its imperial position was increasingly untenable.

Attlee's Labour government

In July 1945, the British electorate voted Churchill out of office and elected a Labour government led by Clement Attlee. Attlee was a tenacious politician and an excellent team leader who led an experienced Cabinet, many of whose members had served in Churchill's wartime National Government. Labour's success resulted mainly from its promised domestic policy rather than imperial issues attracting attention during the election campaign. Nevertheless, many observers predicted that there would be a substantial shift in imperial policy.

There were some important differences between Labour and Conservative imperialist attitudes. The Labour Party had a long-standing aversion to imperialism and was more committed to promoting self-government within the Empire, beginning with Indian independence. Labour's ideological position suggested a different approach to colonial relationships.

Attlee and his tough foreign secretary, Ernest Bevin, were determined to defend Britain's interests abroad. Neither wished to be seen as the liquidator of the Empire. Only regarding India was Attlee committed to granting independence, and this commitment was acted upon with the granting of independence to India and Pakistan in 1947.

Key Figure: Clement Attlee (1883-1967)

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